Consumers: Commission proposes EU-wide
rights for shoppers

The European Commission has today launched
proposals for EU-wide rights to make it easier for consumers to shop on the
Internet and in the main street. The new proposal will guarantee consumers,
wherever they shop in the EU, clear information on price and additional charges
and fees before they sign a contract. It will strengthen consumer protection
against late delivery and non delivery, as well as setting out tough EU-wide
consumer rights on issues from cooling off periods, returns, refunds, repairs
and guarantees and unfair contract term. The proposed Consumer Rights Directive
simplifies 4 existing EU consumer rights directives into one set of rules. It
targets e-commerce as part of a wide ranging overhaul and up grading of existing
EU consumer rights online and in the high street. The aim is to boost consumer
confidence and at the same time to cut red tape which is holding back business
within national borders – denying consumers more choice and competitive
offers. A standard set of consumer contract terms will cut compliance costs
substantially - by up to 97% for EU wide traders. The proposed directive
upgrades existing consumer protection in key areas where there have been large
numbers of complaints in recent years - such as pressure selling. It adapts the
legislation to new technology and sales methods, for example, m-commerce and
online "ebay" auctions. There is a clear requirement in the new proposal for
clear information about consumer rights to be displayed at point of sale.

EU Consumer Commissioner Meglena Kuneva said, "With household budgets under
strain and purchasing power at the top of citizens' concerns, it has never been
more important for consumers to be able to compare prices and shop around to get
the best value on offer. These new rules are designed to strengthen protection
and close the loopholes in key areas that are undermining consumer trust. The
Single Market has the potential to deliver a lot more choice and opportunities
for consumers. But for that we need an EU-wide safety net of rights so consumers
have the security they need to shop around with peace of mind."

Key facts and figures

The Internet is one of the most empowering tools consumers have ever had. It
provides a wealth of information regarding products and prices and gives easy
access to many more retailers than they could ever have reached before. Already
150 million EU citizens - a third of our population - shops over the internet.
So far only 30 million of them shop cross border online in the EU.

Overall, cross border shoppers spend on average € 800 a year, i.e. a
total of 24 billion EUR, which demonstrates the enormous potential of the
internal market if more people were confident to venture beyond their national
borders.

The current rules

The current rules EU consumer protection result from four EU Directives -
Unfair contract terms[1], Sales and
Guarantees[2], Distance
Selling[3], and Doorstep
Selling[4]. These Directives contain
certain minimum requirements; Member States have added rules in an
uncoordinated manner over the years, making EU consumer contract laws a
patchwork of 27 sets of differing rules for example: a mix of differing
information obligations, differing cooling off periods ranging from 7 to 15 days
and differing obligations in relation to refunds and repairs.

The new proposal

The Consumer Rights Directive concerns contracts for sales of goods and
services from business-to-consumer (B2C). Generally all contracts are
covered, i.e. purchases made in a shop, at a distance or away from business
premises.

Pre-contractual information. The Directive obliges the trader to
provide the consumer with a clear set of information requirements, for all
consumer contracts so the consumer can make an informed choice, for example, the
main characteristics of the product, geographical address and identify of the
trader, the price inclusive of taxes, all additional freight, delivery or postal
charges;

Rules on delivery and passing of risk to the consumer (currently not
regulated at EU level): A maximum of 30 calendar days for the trader to
deliver the good to the consumer from signing the contract. The trader bears the
risk and cost of deterioration, loss of the good until the moment the consumer
receives the good. For late or non delivery, the consumer will have a right, new
in most Member States, to a refund as soon as possible and no later than 7 days
from the date of delivery.

Cooling off periods (distance sales, e.g. Internet sales, mobile phone,
catalogue and pressure sales): An EU wide cooling off period of 14 calendar
days when you can change your mind. Introduction of an easy to use standard
withdrawal form.

Repairs, replacement, guarantees. To give more certainty there will
be one and the same standard set of remedies available to all consumers who have
bought a faulty product (i.e. repair or replacement in the first place, followed
by the reduction of the price or the reimbursement of money).

Unfair Contract Terms: a new black list of unfair contract
terms which are prohibited across the EU in all cases and an EU wide grey
list of contract terms deemed to be unfair if the trader does not prove the
contrary.

Pressure Selling; Protection against pressure selling - sales
negotiated away from business premises /"direct selling" is significantly
strengthened in response to a high number of consumer complaints particularly in
pressure selling situations where no or insufficient consumer protection was
granted – with a broader new definition of direct selling contracts and
other steps to close loopholes

What next?

The Contract Rights Directive must be approved by the European Parliament and
EU Governments in the Council of Ministers before coming into law.